Dura creditors committee seeks extension of lien challenge deadline

By Caroline Salls

Pittsburgh, Sept. 5 - Dura Automotive Systems, Inc.'s official committee of unsecured creditors is seeking an amendment to the company's debtor-in-possession facility that would extend the deadline to invalidate, subordinate or challenge pre-bankruptcy second-priority liens, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the committee is asking the court to extend the lien challenge deadline under the DIP facility to the earlier of Dec. 31 or the date Dura's plan of reorganization is confirmed or becomes effective.

The challenge period is scheduled to end on Sept. 26.

The committee said the extension will allow it to properly investigate the value of second-lien preference litigation before it files the related lawsuit.

A hearing is scheduled for Sept. 26.

Dura, a Rochester Hills, Mich.-based automotive parts maker, filed for bankruptcy on Oct. 30, 2006. Its Chapter 11 case number is 06-11202.

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